US close: Stocks end well off their intra-day lows
Stocks finished in the black in another volatile session, albeit less so than on Thursday, with some traders looking out to the following week's release of consumer price data for January as a potentially key event.
Analysts at both Deutsche Bank and Bank of America-Merrill Lynch noted the potential importance for financial markets of the next set of CPI figures due out on 14 February.
In a research note sent to clients, the latter pointed out how: "Markets stop panicking when central banks start panicking...Fed has become "buyer of [volatility]" [...] markets stop panicking when central banks start panicking"...late-cycle crash/correction in 1987, 1998, 2016 all arrested by policy actions."
2,540 on the S&P 500 and 3.0% yields on the benchmark 10-year US Treasury would likely represent "good entry points in coming weeks", they added.
Nonetheless, in a separate note they wrote: "Stress-testing the Fed: The US equity market is seemingly waking up to the idea that we are in a higher rate environment amid rising inflation and steady Fed hikes.
"The equity market sell-off thus far does not alter our outlook for the US economy or monetary policy. However, if it turns into a sustained and broad-based deterioration of financial conditions, it would be a cause of concern."
Against that backdrop, by the closing bell, the Dow Jones Industrial Average had receovered from its intraday lows of 23,373.22, and added 1.38% to 24,190.90, alongside 1.49% rise for the S&P 500 to 2,619.55 and an advance of 1.44% for the Nasdaq Composite to 6,874.49.
Meanwhile, the Chicago Board of Options Exchange's VIX volatility index had retreated from an intra-day high of 41.06 and down by 13.15% at 29.06.
On Thursday, stocks in the US tumbled again as worries about rising inflation and higher interest rates continued to plague investors. The Dow ended down 1,033 points, while the S&P 500 fell 101 points and the Nasdaq sank 275 points.
Investors were also digesting news that US lawmakers voted to pass a two-year budget that will boost government spending by $300bn. The US government officially shut down for the second time this year earlier as Congress had failed to meet the midnight on Thursday deadline to vote on the new budget. However, with the measures now passed by both the Senate and the House, the shutdown could end before the working day begins.
In corporate news, FedEx and UPS took a beating following reports that Amazon was preparing to launch a delivery service for businesses that would pit it against the two companies.
Teva Pharmaceuticals stock dipped after it warned that 2018 results would be weaker-than-expected this year despite aggressive cost-cutting.
Sharpie pens maker Newell Brands was also in focus, after saying that activist investors Starboard Value LP and Opportunity Master Fund were looking to nominate 10 directors to its board.
Elsewhere, shares in GrubHub slid despite the company announcing a partnership with Yum Brands a day earlier.
Dow Jones - Risers
American Express Co. (AXP) $91.72 3.83%
Microsoft Corp. (MSFT) $88.18 3.73%
General Electric Co. (GE) $14.94 3.39%
Intel Corp. (INTC) $43.95 2.81%
Caterpillar Inc. (CAT) $149.23 2.21%
Cisco Systems Inc. (CSCO) $39.53 1.96%
Dowdupont Inc. (DWDP) $69.49 1.86%
Walt Disney Co. (DIS) $103.09 1.72%
Home Depot Inc. (HD) $184.12 1.60%
International Business Machines Corp. (IBM) $149.51 1.30%
Dow Jones - Fallers
United Technologies Corp. (UTX) $125.03 -5.26%
Travelers Company Inc. (TRV) $137.08 -3.56%
3M Co. (MMM) $225.20 -3.43%
Walmart Inc. (WMT) $99.35 -3.38%
Coca-Cola Co. (KO) $43.13 -3.21%
McDonald's Corp. (MCD) $160.79 -2.96%
Visa Inc. (V) $116.32 -2.78%
JP Morgan Chase & Co. (JPM) $110.04 -2.51%
Procter & Gamble Co. (PG) $79.95 -2.35%
Pfizer Inc. (PFE) $34.16 -2.34%
S&P 500 - Risers
Mattel Inc. (MAT) $17.27 7.94%
Nvidia Corp. (NVDA) $232.08 6.69%
Dollar Tree Inc (DLTR) $107.62 5.95%
Urban Outfitters Inc. (URBN) $34.24 5.78%
Ameren Corp. (AEE) $55.42 5.38%
Applied Materials Inc. (AMAT) $48.08 5.09%
Kellogg Co. (K) $67.33 4.86%
Essex Prty Trust Inc. (ESS) $228.34 4.43%
Regeneron Pharmaceuticals Inc. (REGN) $335.85 4.27%
Host Hotels & Resorts Inc. (HST) $19.52 4.11%
S&P 500 - Fallers
Expedia Inc. (EXPE) $104.00 -15.47%
Teradata Corp. (TDC) $35.00 -12.72%
Newfield Exploration Co (NFX) $25.98 -8.94%
Murphy Oil Corp. (MUR) $26.33 -6.86%
Mohawk Inds Inc. (MHK) $249.45 -6.80%
Synchrony Financial (SYF) $35.04 -6.59%
Schlumberger Ltd. (SLB) $65.19 -6.54%
Owens-Illinois Inc. (OI) $21.08 -6.52%
Pioneer Natural Resources Co. (PXD) $165.06 -6.33%
Newell Brands Inc (NWL) $27.61 -6.28%
Nasdaq 100 - Risers
Nvidia Corp. (NVDA) $232.08 6.69%
Dollar Tree Inc (DLTR) $107.62 5.95%
Applied Materials Inc. (AMAT) $48.08 5.09%
Take-Two Interactive Software Inc. (TTWO) $108.45 4.77%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $218.55 4.52%
Regeneron Pharmaceuticals Inc. (REGN) $335.85 4.27%
Maxim Integrated Products Inc. (MXIM) $57.95 4.23%
Xilinx Inc. (XLNX) $65.38 4.08%
Align Technology Inc. (ALGN) $229.37 3.92%
Alphabet Inc. Class A (GOOGL) $1,046.27 3.83%
Nasdaq 100 - Fallers
Expedia Inc. (EXPE) $104.00 -15.47%
Mercadolibre Inc. (MELI) $335.86 -2.74%
Hologic Inc. (HOLX) $37.75 -2.71%
Priceline Group Inc (PCLN) $1,765.00 -2.27%
Express Scripts Holding Co (ESRX) $71.71 -2.24%
Biomarin Pharmaceutical Inc. (BMRN) $80.33 -2.23%
Wynn Resorts Ltd. (WYNN) $166.22 -1.81%
Ctrip.Com International Ltd. Ads (CTRP) $43.84 -1.77%
Tesla Inc (TSLA) $310.42 -1.53%
Mondelez International Inc. (MDLZ) $42.14 -1.27%